Battery Maker Ener1 To Recharge With Prepackaged Ch. 11

Law360, New York (January 26, 2012, 2:10 PM EST) -- Citing a stalled electric car market and increasing competition from Asian rivals, lithium battery maker Ener1 Inc. on Thursday filed for a prepackaged Chapter 11 that will see the company get an $81 million equity boost from its secured creditors.

Ener1, which received a $118 million federal grant in 2010 from the U.S. Department of Energy as part of the stimulus program, said all of its secured creditors supported the reorganization planned filed in New York bankruptcy court.